Jeffrey Company wants to double production of Product X from 1,000 units to 2,000 units.The variable manufacturing cost per unit is $10.The variable nonmanufacturing cost per unit is $20.There are no fixed costs.The selling price per unit is $50.What is the incremental revenue of the proposed change?
A) $10,000
B) $20,000
C) $30,000
D) $50,000

Question

Quizplus · Accepted Answer

The incremental revenue is calculated by multiplying the increase in units by the selling price per unit: (2,000 - 1,000) units * $50 = $50,000.

Jeffrey Company Wants to Double Production of Product X from 1,000